The Swiss stock market ended in the red on Wednesday. After having been in the green again in the morning, the SMI reversed the trend and started to fall again, falling below the symbolic 12,000 point mark at its lowest point of the day, to end just above this level.
In New York, Wall Street moved in a dispersed order in the morning, technology in the green while investors wonder about the trajectory of rates after comments from members of the Federal Reserve (Fed), while awaiting the publication of new indicators Americans.
As we approach the end of the first half, several governors and regional presidents of the Fed have outlined their scenarios for the rest of the year regarding the evolution of inflation and unemployment as well as the monetary response possible.
The hypotheses range from “an orderly decline in inflation allowing the Fed to slowly abandon its restrictive policy to a pronounced slowdown (through) inflation and growth which remain strong, meaning high rates for longer, or even new increases,” summarized Art Hogan of B. Riley Wealth Management.
At the macroeconomic level, household confidence declined in France in June, penalized in particular by greater pessimism about future living standards. In Germany, the GFK barometer of consumer morale also weakened, while the rise in inflation in May revived the feeling of uncertainty.
The short-term outlook for the Swiss economy is moderate, according to analysts interviewed as part of the publication of the UBS-CFA indicator. Also, over the next six months, experts expect the franc to appreciate further against the euro and the dollar.
The SMI ended down 0.58% at 12,015.72 points, lower at 11,984.33 points and higher at 12,163.23 points. The SLI lost 0.42% to 1947.09 points and the SPI 0.56% to 15,947.72 points. Of the 30 star stocks, 18 fell and 12 advanced.
Dental implant specialist Straumann (+2.7%) topped the group of winners, ahead of Sonova (+1.2%) and Sika, SIG Group and Kühne+Nagel (all +1.1%).
The logistics specialist seems to have benefited indirectly from the solid performance of Fedex in the United States, which published results above expectations in the fourth quarter of its annual financial year postponed on Tuesday and saw its stock price soar.
The pharmaceutical heavyweight Novartis (+0.04%) gained a little ground, while Roche (good -1.5%, buoyant -1.3%,) weighed heavily on the index, as did a slightly less clearly, Nestlé (-1.1%).
The good Lindt (-3.0%) finished bottom.
Richemont (-1.5%) shares the second place of the biggest losers with the good Roche.
The Geneva luxury specialist saw its price target lowered by the Royal Bank of Canada. The analyst expects strong growth in Japan, as well as positive figures for the United States and Europe, but the Asia-Pacific region is expected to see a decline. The momentum in jewelry is expected to continue, while watchmaking could decline given Swiss watch export data in recent months.
The insurer Zurich Insurance (-1.1%) announced that it would take over AIG’s global insurance and personal travel assistance activities for $600 million, plus a possible additional supplement. The transaction is expected to be finalized before the end of the year.
The Federal Court confirmed the sanction imposed by the Competition Commission on Swisscom (-0.6%) in the context of the dispute over sports broadcasts. The blue giant will have to pay a fine of 71.8 million francs.
On the broader market, the operator of shops and restaurants for travelers Avolta (-1.5%) announced the obtaining of a new airport concession in the Asia-Pacific zone, in Macau, valid for a period of seven years.
Distribution facilitator DKSH (-1.6%) has signed a contract with generic manufacturer Sunward Pharmaceutical, based in Singapore. DKSH will take care of the logistics and marketing of the products in Malaysia. No financial details have been leaked.
The Geneva-based banking software publisher Temenos (-1.5%) has placed its services on subscription with the Canadian Bank Haventree. The financial terms of the operation are not disclosed.
The glass packaging producer Vetropack (-0.7%) announced on Wednesday the immediate cessation of production at its St-Prex site, initially scheduled for August 2024. Management justifies “this irreversible measure” with the wrong condition of the melting tank and by a reduced workforce no longer guaranteeing the safe operation of the plant. (AWP)
